US-Iran Diplomacy: Iran says it has received a formal U.S. response to its latest proposal to end the war and reopen the Strait of Hormuz, after Washington rejected an earlier Iranian plan; officials say talks continue via mediators as Tehran warns it could widen its response if oil exports remain blocked. Iraq Withdrawal: The U.S. completed its final troop exit from Iraq, ending a more than two-decade footprint and raising fears that Iran and its allies could move to fill the security vacuum. Regional Security & Energy: Western forces’ drawdown and ongoing Hormuz tensions keep oil and shipping risk elevated, while the UK warns of sharp winter energy bill hikes tied to Middle East-linked supply constraints. Sanctions & Arms Routes: The U.S. Treasury imposed new sanctions on individuals and entities accused of helping Iran procure weapons components, including a Pakistani businessman and firms tied to intermediaries. Israel-Gaza Spillovers: Reports say algae outbreaks at Israeli desalination plants could worsen water and sewage conditions in Gaza, adding another strain to the conflict’s humanitarian fallout. Aviation Incident: Netanyahu says a co-pilot stabbed the pilot on a Flydubai flight bound for Israel and tried to crash it; passengers and crew subdued the attacker and the plane landed safely in Saudi Arabia. Digital Government: Qatar’s MCIT signed an MoU with PwC Middle East to boost digital government capabilities. Local Fuel Relief (Malaysia): Malaysia cut petrol and diesel prices for Oct 1-7, citing moderating crude costs and uneven refinery supply.